ACCO BRANDS CORP (ACCO) Stock Fundamental Analysis
NYSE:ACCO - New York Stock Exchange, Inc. - US00081T1088 - Common Stock - Currency: USD
Taking everything into account, ACCO scores 3 out of 10 in our fundamental rating. ACCO was compared to 83 industry peers in the Commercial Services & Supplies industry. ACCO may be in some trouble as it scores bad on both profitability and health. ACCO has a bad growth rate and is valued cheaply. ACCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ACCO was profitable.
ACCO had a positive operating cash flow in the past year.
In multiple years ACCO reported negative net income over the last 5 years.
In the past 5 years ACCO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.56%, ACCO is doing worse than 67.47% of the companies in the same industry.
ACCO has a worse Return On Equity (-16.76%) than 66.27% of its industry peers.
ACCO's Return On Invested Capital of 6.55% is in line compared to the rest of the industry. ACCO outperforms 56.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACCO is below the industry average of 10.74%.
The 3 year average ROIC (5.91%) for ACCO is below the current ROIC(6.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.56% | ||
| ROE | -16.76% | ||
| ROIC | 6.55% |
ROA(3y)-1.95%
ROA(5y)-0.11%
ROE(3y)-7.05%
ROE(5y)-0.21%
ROIC(3y)5.91%
ROIC(5y)5.4%
1.3 Margins
ACCO has a better Operating Margin (8.70%) than 63.86% of its industry peers.
In the last couple of years the Operating Margin of ACCO has declined.
ACCO has a Gross Margin (33.33%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ACCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.7% | ||
| PM (TTM) | N/A | ||
| GM | 33.33% |
OM growth 3Y3.62%
OM growth 5Y-3.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.16%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACCO is destroying value.
The number of shares outstanding for ACCO has been reduced compared to 1 year ago.
Compared to 5 years ago, ACCO has less shares outstanding
ACCO has a worse debt/assets ratio than last year.
2.2 Solvency
ACCO has an Altman-Z score of 0.78. This is a bad value and indicates that ACCO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ACCO (0.78) is worse than 77.11% of its industry peers.
ACCO has a debt to FCF ratio of 6.31. This is a slightly negative value and a sign of low solvency as ACCO would need 6.31 years to pay back of all of its debts.
ACCO has a Debt to FCF ratio of 6.31. This is in the better half of the industry: ACCO outperforms 62.65% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that ACCO has dependencies on debt financing.
ACCO's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. ACCO is outperformed by 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.89
WACC7.38%
2.3 Liquidity
ACCO has a Current Ratio of 1.49. This is a normal value and indicates that ACCO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.49, ACCO perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that ACCO may have some problems paying its short term obligations.
The Quick ratio of ACCO (0.94) is worse than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
ACCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.27%.
Measured over the past years, ACCO shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.52% on average per year.
ACCO shows a decrease in Revenue. In the last year, the revenue decreased by -9.09%.
The Revenue has been decreasing by -3.15% on average over the past years.
EPS 1Y (TTM)-7.27%
EPS 3Y-10.02%
EPS 5Y-3.52%
EPS Q2Q%0%
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y-6.3%
Revenue growth 5Y-3.15%
Sales Q2Q%-8.29%
3.2 Future
ACCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.55% yearly.
ACCO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.88% yearly.
EPS Next Y1.67%
EPS Next 2Y7.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.68%
Revenue Next 2Y-2.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ACCO is valuated cheaply with a Price/Earnings ratio of 3.50.
Compared to the rest of the industry, the Price/Earnings ratio of ACCO indicates a rather cheap valuation: ACCO is cheaper than 96.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ACCO is valued rather cheaply.
ACCO is valuated cheaply with a Price/Forward Earnings ratio of 3.44.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACCO indicates a rather cheap valuation: ACCO is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ACCO to the average of the S&P500 Index (21.32), we can say ACCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.5 | ||
| Fwd PE | 3.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACCO is valued cheaply inside the industry as 87.95% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACCO indicates a rather cheap valuation: ACCO is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.43 | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACCO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.1
PEG (5Y)N/A
EPS Next 2Y7.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACCO has a Yearly Dividend Yield of 8.31%, which is a nice return.
The stock price of ACCO dropped by -30.58% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.57, ACCO pays a better dividend. On top of this ACCO pays more dividend than 100.00% of the companies listed in the same industry.
ACCO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.31% |
5.2 History
The dividend of ACCO has a limited annual growth rate of 4.29%.
ACCO has been paying a dividend for over 5 years, so it has already some track record.
ACCO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.29%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
The earnings of ACCO are negative and hence is the payout ratio. ACCO will probably not be able to sustain this dividend level.
The dividend of ACCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-27.95%
EPS Next 2Y7.55%
EPS Next 3YN/A
NYSE:ACCO (4/21/2025, 2:33:53 PM)
3.565
-0.04 (-1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.4%
Inst Owner Change-0.56%
Ins Owners2.12%
Ins Owner Change2.48%
Market Cap321.21M
Analysts85
Price Target9.69 (171.81%)
Short Float %2.44%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.31% |
Yearly Dividend0.3
Dividend Growth(5Y)4.29%
DP-27.95%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.73%
Min EPS beat(2)-7.49%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)21.32%
Min EPS beat(4)-7.49%
Max EPS beat(4)76.44%
EPS beat(8)6
Avg EPS beat(8)17.05%
EPS beat(12)8
Avg EPS beat(12)12.87%
EPS beat(16)11
Avg EPS beat(16)25.9%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.81%
Min Revenue beat(4)-5.36%
Max Revenue beat(4)-1.33%
Revenue beat(8)2
Avg Revenue beat(8)-2.79%
Revenue beat(12)3
Avg Revenue beat(12)-2.45%
Revenue beat(16)5
Avg Revenue beat(16)-1.4%
PT rev (1m)0%
PT rev (3m)-12.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-172.22%
EPS NY rev (1m)-10.03%
EPS NY rev (3m)-10.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.5 | ||
| Fwd PE | 3.44 | ||
| P/S | 0.19 | ||
| P/FCF | 2.43 | ||
| P/OCF | 2.17 | ||
| P/B | 0.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.93 |
EPS(TTM)1.02
EY28.61%
EPS(NY)1.04
Fwd EY29.09%
FCF(TTM)1.47
FCFY41.19%
OCF(TTM)1.64
OCFY46.14%
SpS18.49
BVpS6.73
TBVpS-6.1
PEG (NY)2.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.56% | ||
| ROE | -16.76% | ||
| ROCE | 8.34% | ||
| ROIC | 6.55% | ||
| ROICexc | 6.84% | ||
| ROICexgc | 22.09% | ||
| OM | 8.7% | ||
| PM (TTM) | N/A | ||
| GM | 33.33% | ||
| FCFM | 7.94% |
ROA(3y)-1.95%
ROA(5y)-0.11%
ROE(3y)-7.05%
ROE(5y)-0.21%
ROIC(3y)5.91%
ROIC(5y)5.4%
ROICexc(3y)6.12%
ROICexc(5y)5.56%
ROICexgc(3y)20.03%
ROICexgc(5y)18.98%
ROCE(3y)7.5%
ROCE(5y)6.86%
ROICexcg growth 3Y4.49%
ROICexcg growth 5Y-1.27%
ROICexc growth 3Y8.72%
ROICexc growth 5Y-1.98%
OM growth 3Y3.62%
OM growth 5Y-3.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.16%
GM growth 5Y0.57%
F-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 6.31 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 21.75% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 2.94 | ||
| Cash Conversion | 67.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 0.78 |
F-Score5
WACC7.38%
ROIC/WACC0.89
Cap/Depr(3y)20.22%
Cap/Depr(5y)21.41%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.27%
EPS 3Y-10.02%
EPS 5Y-3.52%
EPS Q2Q%0%
EPS Next Y1.67%
EPS Next 2Y7.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.09%
Revenue growth 3Y-6.3%
Revenue growth 5Y-3.15%
Sales Q2Q%-8.29%
Revenue Next Year-6.68%
Revenue Next 2Y-2.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.16%
EBIT growth 3Y-2.9%
EBIT growth 5Y-6.98%
EBIT Next Year12.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y15.14%
FCF growth 3Y-1.49%
FCF growth 5Y-4.33%
OCF growth 1Y15.15%
OCF growth 3Y-2.44%
OCF growth 5Y-6.18%